Industry Level Strategy By Donna

Moulton

• Starbucks Corp. was founded in 1971. They have 17,000 stores in about 50 countries.

• They are publicly traded on the NASDAQ under the ticker symbol SBUX.

• They have 3 business segments, retail stores, international global stores and about 19,000 food service contracts, and consumer products group(licensed partners distribute and sell the branded beverages and food products to groceries, warehouse stores and convenience outlets worldwide.

• Starbucks operates in about 50 countries, and Canada, the UK and Japan represent the companies largest international markets.

• Starbucks brands include Starbucks beverages, Seattle's Best Coffee, Tazo teas and then Frappuccino.

• Ranked in at number 94 buy Fortune in the 100 best companies to work for. Competitor companies didn’t even make the list.

• With a full staff the chain can churn out 220 customers an hour, their goal is from the minute the customer walks through the door and into the line to get them threw in 3-5 minutes.

• When you become a barista the candidate must become certified in pouring the perfect cappuccino and latte, also never serving anything over the temperature of 180 degrees. (165 degrees is the normal temp of a latte or cappuccino) Each baristas undergoes 30 hours of training.

• Starbucks coffee while in a shop never sites in a pot for longer than a half hour, they operate with 4 batches and rotate them every 15 minutes.

• Barista’s who work 20 hours a week are eligible for health insurance. (In 2009 this cost the company 250 million).

• Customers can pay via phone and gift card, and the chain also offers free wifi service with no restriction on laptop usage.

• Starbucks also has a strong sense of CSR (Corporate Social Responsibility) whether it be environmental, communal, Ethical sourcing or global. An example of this would be ethos water Project: “The program was created to raise awareness about this terrible crisis and provide children with access to clean water. Every time you buy a bottle of Ethos® Water, you contribute $.05US ($.10CN in Canada) to the Ethos® Water Fund, part of the Starbucks Foundation. $7.38 million has been granted to help support water, sanitation and hygiene education programs in water-stressed countries – benefiting more than 430,000 people around the world.” http://www.starbucks.com/responsibility/community/ethos-water-fund

• Starbucks’ top 3 customer attractions:

• 1. A place for everyone

• Starbucks serves up high-quality coffee, But that is not the only menu option. They also carry a selection of food items and bottled beverages, this makes them more friendly to children and snack pursuers. From tasty sweets to healthy snacks they have a little something for everyone.

• 2. Ambiance

• Since Starbucks has not-so-competitive prices the ambiance of the shop is a draw. Customers know what to expect when they enter through the front door, a coffee shop with a rich warm color scheme, alternative and indie music, walls full of art, and the baristas in green working the counter, free wifi and comfortable seating, The company strives for comfort.

• 3. Consistently Convenient

• Starbucks is convenient in many ways whether it’s the Baristas who work quickly and keep lines moving while serving a great tasting product, or the amount of convenient locations, The newly formed partnership with the company Square so customers can pay via phone, and then lastly the coffee shops comfortable inviting environment.

• Starbucks promotes seasonal flavors and promotions much like all their competitors.

• They also offer free music downloads in itunes of the many bands that play over their store radio.

• Lastly Starbucks has no clear competition; The closest competitors include Dunkin Donuts, McDonalds and local coffee shops. Starbucks holds the dominant position in the specialty coffee shoppe market and has no single clear rival thus far.

• Dunkin Donuts a competitor of starbucks was founded in 1950 as primarily a coffee and donut shoppe. They have a total of 10,083 shops of that number 3,068 stores are located in over 32 countries.

• As of more recently the shoppe has been adding more healthy choices to their menu much like starbucks, except this chain offers hot food as well as tasty treats like muffins and their many choices of donuts. They have even partnered up with Baskin Robins to double as an ice cream shoppe in some of the chains locations.

• Dunkin Donuts has a bright ambience about them with the bold bright colors of the interior walls and matching tables. Unlike Starbucks many locations are franchised and do not offer wifi or a comfortable seating area, and as for their music they are not as trendy as their competitor. They are a more coffee to go sort of shop.

• They do however offer coupons weekly by mail and also like Starbucks they have seasonal and holiday themed menu items.

• Another competitor of Starbucks is McDonalds, founded in 1940 they now have over 34,000 restaurant locations world wide.

• The company has been altering their image for quite some time now and as of late have branded their coffee McCafe.

• McCafe locations in other countries offer a trendy cafe like atmosphere and snacks and treats much like Starbucks.

• McDonlds though does not offer the same type of ambience or comfort as Starbucks in the states as of yet and caters more towards children and people on the go.

• Although many menu choices are not very healthy the company has been altering the menu to include salads and healthier options.

• Unlike Starbucks this competitor also offers hot foods and weekly coupons to draw in the crowds.

• They also cater to a larger demographic than Starbucks and have more locations.

Local Coffee Shops• Secondary competitors would include many local

and smaller coffee shops, for example Last Drop Coffee Shoppe in Monroe CT.

• They offer a full range of coffee beverages, cooler beverages, breakfast and lunch (hot and cold) and have open mic night and live bands play once a week.

• Even though they are not a chain there is a Starbucks up the street from this shop, the difference between this shop and Starbucks is the homelike atmosphere where everyone knows your name.

• Works Cited

• "About Us." DunkinDonuts.com. N.p., n.d. Web. 30 Apr. 2013.

• "Being a Responsible Company." Starbucks Coffee Company. N.p., n.d. Web. 30 Apr. 2013.

• "Best Companies to Work For 2013: Full List." CNNMoney. Cable News Network, n.d. Web. 30 Apr. 2013.

• "Dunkin' Brands Group Inc." Business Insights: Essentials. N.p., n.d. Web.

• Groth, Aimee, and Gus Lubin. "11 Things Starbucks Does Better Than Almost Any Competitor." Business Insider. N.p., 29 July 2011. Web. 30 Apr. 2013.

• Hennessey, Rachel. "3 Reasons Why Starbucks Still Shines, Despite Market Shortcomings." Forbes. Forbes Magazine, 06 Aug. 2012. Web. 30 Apr. 2013.

• "Our Story." :: McDonalds.com. N.p., n.d. Web. 30 Apr. 2013.

• "Starbucks Corp." Business Insights: Essentials. N.p., n.d. Web.

• Zeuschel, Alison. "Starbucks: A New Business Strategy." Suite101.com. N.p., 22 Mar. 2011. Web. 30 Apr. 2013.